'Incredibly concerning': Why petrol prices are expected to rise
Australians face an anxious wait to learn if the drone attacks on Saudi Arabian oilfields will drive up domestic petrol prices.
The drone strikes are expected to strip at least five per cent from global oil supplies, with some analysts predicting wholesale barrel prices could increase by 50 per cent.
However federal energy minister Angus Taylor has moved to reassure the nation and has downplayed the risk of potential pain for Australian drivers.
"It's clear that there's no immediate threat to our supplies," Mr Taylor told ABC News on Monday.
"There are ample commercial stocks globally, and that's the key to making sure that this is as manageable as possible and that the impact is minimised."
The United States has accused Iran of orchestrating Saturday's strikes on Saudi oil plants, but Tehran has denied responsibility.
US pump prices are likely to rise in coming days as gasoline futures spiked by more than 10 per cent on Sunday trading, analysts said.
The national average price of regular gasoline was currently US$2.57 per gallon, according to American Automobile Association.
Reserve fuel levels concerning for Labor
As the incident threatens to escalate into a military conflict, Opposition Leader Anthony Albanese said the Morrison government must keep an eye on its reserve fuel stocks.
"We've raised previously our concern about fuel security. That was one of the reasons for the shipping policy that we raised prior to the electoral loss, it was about fuel security," he told reporters in Canberra.
"This is an issue for Australia and the government needs to deal with it."
As of last month, Australia had just 28 days’ worth of fuel in supplies, significantly less than the 90-day minimum required by the International Energy Agency.
The Australian government has entertained the idea of a deal with the US which would see Australia gain access to the US’s huge 700-day strong fuel reserve.
However Trump indicated the US will themselves be utilising the Strategic Petroleum Reserve following the drone attacks if needed.
Mr Taylor expects oil production to bounce back to normal quickly, keeping price disruption to a minimum.
Even still, shadow treasurer Jim Chalmers described the air strikes in Saudi Arabia as "incredibly concerning".
"When you consider that alongside other issues in the Strait of Hormuz, other issues in the global economy, those issues are concerning," Mr Chalmers told reporters in Canberra.
"But our challenges in the Australian economy are still primarily home-grown."
With AAP and Reuters
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